Shahjalal Islami Bank Limited has decided to issue a Tk500 crore perpetual bond and the proceeds will be regarded as Additional Tier-1 capital of the issuer, which will help the private sector lender fulfill its Basel-III requirement.
The name of the bond will be SJIBL Mudaraba Perpetual Bond.
The bank will issue the bond following the approval of the Bangladesh Securities Exchange Commission (BSEC), according to Thursday's revelations on both local stock exchanges.
In this bond, Tk450 crore capital will be issued through private placement and the rest of Tk50 crore through public offerings.
The bank said the decision on issuing the bond was made in March this year but the board of directors has decided to change the manner from only private placement in complying with the BSEC's directive.
The directive has made it mandatory for the issuer to issue the bond through both private placement and a public offering.
Shahjalal Islami Bank was listed on both local stock exchanges in 2007.
In 2020, it posted a profit of Tk191.34 crore and declared a 12% dividend – 7% cash and 5% stock.
As of April, sponsors and directors held 48.77%, institutional investors 13.49%, foreign investors 0.15% and general public 37.59% shares of the private sector lender.